In response to the Central Bank of Kuwait's (CBK) enforcement of new regulations governing exchange companies, a significant number of money exchange shops in Kuwait have ceased operations. These measures aim to enhance compliance with anti-money laundering standards and streamline the financial sector.

On June 11, 2024, the Council of Ministers issued Resolution No. 552/2024, transferring the supervision of exchange shops from the Ministry of Commerce and Industry to the CBK. This was implemented through Ministerial Resolution No. 233/2024, which set forth new operational requirements for exchange businesses. License holders were given until March 31 to comply with these regulations.

Following the deadline, the Ministry of Commerce and Industry, under Minister Khalifa Al-Ajeel, conducted inspections across Kuwait. Out of 138 non-compliant shops, only one in Fahaheel was closed by authorities; the others voluntarily suspended operations to meet the new standards. Director Faisal Al-Ansari praised these businesses for their adherence and urged them to coordinate with the CBK to regularize their status.

The requirement for exchange businesses to convert into companies with a minimum capital of KD 2 million poses a significant challenge, potentially leading to market consolidation. While many institutions already follow CBK procedures, such as verifying customer identities for transactions over KD 3,000 and utilizing KNet for payments, meeting the new capital requirements remains a hurdle.

The Ministry of Commerce and Industry continues to monitor and enforce compliance, emphasizing the importance of meeting Financial Action Task Force (FATF) standards for Kuwait's economic future. Exchange offices are required to apply for establishment as exchange companies with fully paid capital of no less than KD 2 million. Currently, 138 exchange offices operate under the ministry's supervision.

These regulatory changes reflect Kuwait's commitment to strengthening its financial sector and combating financial crimes.